Micro currency trading means trading currencies in lots of 1000 units so suits new forex traders. The 2023 best brokers offering micro trading accounts were Pepperstone, City Index and Plus500.
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Our best micro currency trading broker list in September 2023 is the following
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
9.33 |
SCG, ASIC FCA, CySEC |
1.12 | 1.69 | 1.22 | 0.1 | 0.6 | 0.3 | $3.50 |
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77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
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6.83 | ASIC, MAS, FCA | 0.70 | 1.1 | 2.2 | 0.07 | 0.011 | 0.8 | $2.50 |
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95ms | $150 | 84+ | 25+ | 30:1 | 500:1 |
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5.83 |
ASIC, CySEC, MAS FCA, FMA, DFSA EFSA, FSA, FSCA |
1.70 | 2.3 | 1.4 | - | - | - | - |
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|
140ms | $100 | 71+ | 15+ | 30:1 | 300:1 |
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7.17 |
ASIC, CySEC, MFSA FCA, FSA, FINRA GFSC |
1.0 | 2.0 | 1.0 | - | - | - | - |
|
|
|
130ms | $200 (Australia), $50-$100 (EU) | 49+ | 46+ | 30:1 | 400:1 |
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7.46 |
FCA, FSCA CySEC, SCB, FSCM |
1.32 | 1.7 | 1.95 | 0.32 | 0.37 | 0.51 | $3.50 |
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|
151ms | $0 | 69+ | 30+ | 30:1 | 200:1 |
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|
6 |
FCA, FSCA, CySEC FSCM, CMA, |
1.9 | 2 | 2 | 0.0 | 0.0 | 0.5 | $2.00 |
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160ms | $500 | 63+ | - | 30:1 | 300:1 |
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5.42 |
FCA, DFSA, CySEC BaFin, CMNV, KNF |
0.9 | 1.4 | 1.3 | 0.9 | 0.14 | 0.13 | - |
|
|
|
160ms | $250 | 49+ | 16+ | 30:1 | 500:1 |
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8.83 |
FCA, CIRO, ASIC MAS, JFSA, FSCM KNF, NFA/CFTC |
0.6 | 0.9 | 0.7 | - | - | - | - |
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|
- | $0 | 70+ | 4+ |
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FCA, FSCA, CYSEC DFSA,CMA,FSA |
1.2 | 1.9 | 1.8 | 0.1 | 0.3 | 0.7 | $3.00 |
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$0 | 38+ | 19+ |
|
Micro currency trading involves trading in lots of 1000, rather than the usual 100,000. Some brokers offer micro-trading accounts, which allow this type of niche trading. As such, we have come up with our picks for the brokers with the best micro currency trading platforms in Australia.
The Broker With The Best Micro Currency Platform Range
Pepperstone is a top CFD and forex brokerage that offers a range of features ideal for micro trading. You gain access to ultra-competitive trading conditions with tight spreads, fast order execution, and trade sizes as small as 0.01 lots. You can choose between three trading platforms all well-suited to micro trading strategies – being MetaTrader 4 (MT4), MetaTrader 5, and cTrader.
Who Should Use Micro Trading Accounts?
Regardless of your trading experience, micro accounts can be a great approach to managing the high risk that comes with forex trading in the global markets. The key benefits to micro trading include:
If you are a beginner forex trader just starting out, trading smaller lot sizes is a great way to reduce costs and risks. While experienced traders can use micro accounts to test sophisticated trading strategies against real-time market conditions before using larger lot sizes.
Account Types for Micro Trading with Pepperstone
The broker offers two trading accounts with different spread and fee structures. Regardless of which account you use, you can trade micro-lots (0.01 standard lots) and above.
Regardless of whether you choose the Pepperstone Standard account (with no commissions) or the Razor account with commissions of $7.00 per standard lot, you can be certain you are getting competitive spreads with Pepperstone. The below module compares Pepperstone’s Razor account with other brokers, these average spreads are compiled using published spreads from each broker’s website and updated each month. While spreads change each month, Pepperstone spreads generally stand up very well against other brokers with similar style accounts.
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IC Markets Raw Account Spreads
|
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|---|---|---|---|---|---|
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0.12 | 0.69 | 0.40 | 1.38 | 0.22 |
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0.20 | 0.50 | 0.40 | 1.50 | 0.20 |
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0.02 | 0.23 | 0.27 | 0.85 | 0.17 |
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0.10 | 0.30 | 0.30 | 1.40 | 0.20 |
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0.17 | 0.59 | 0.54 | N/A | 0.30 |
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0.20 | 0.60 | 0.50 | 10.00 | 0.40 |
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0.10 | 0.60 | 0.60 | 1.30 | 0.50 |
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n/a | 0.20 | 0.60 | 3.10 | 0.50 |
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0.44 | 0.85 | 0.40 | 1.30 | 0.42 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Compare All Low Spread Forex Brokers
Pepperstone offers some of the best spreads through its Razor Account of all brokers. The calculator below calculates your spread costs plus commission when you open a trade.
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Trading Platforms
Pepperstone’s full range of 60+ forex pairs can be traded as micro-lots via MetaTrader 4 (MT4), MetaTrader 5 (MT5) or cTrader. As MT4 is a forex trading platform with advanced trading tools, it is ideal for micro trading and risk management.
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are some of the most popular platforms designed for retail investor accounts. MT4 is predominately a forex trading platform, although Pepperstone clients can also access other financial markets on MT4 like cryptocurrencies, commodities, and indices. MT5, on the other hand, is a multi-asset platform with access to share markets as well.
You can use multiple devices to conduct technical analysis and place orders. As well as the online trading platform (WebTrader), desktop platforms are available for Windows and Mac computers, plus mobile apps for both iOS and Android devices.
Forex Trading Tools
While trading smaller lot sizes helps to minimise potential losses, there are plenty of trading tools that can supplement micro trading strategies.
As well as the standard MT4 trading tools, the broker offers premium add-ons free of charge. Pepperstone’s Smart Trader Tools provides 28 extra technical indicators and Expert Advisors that can help manage risk and maximise gains.
Getting Started
If you want to start trading right away, you can easily sign up for a Pepperstone account online. No initial minimum deposit is required to open an account, but the broker does recommend at least $200. Depositing and withdrawing money from your trading account is easy with a good range of funding methods:
Depending on the subsidiary you open an account with, any of these local currencies can be used as your base currency.
Demo Accounts
If you are unsure whether Pepperstone and MT4 suit your trading needs, you can sign up for a free demo account. You are provided with a virtual account balance, meaning you can practice trading micro-lots in real-time market conditions before using real money.
Pepperstone is a multi-regulated Australian broker. Clients all over the world can trade with Pepperstone as it’s licenced and regulated by ASIC (Australia), FCA (UK), CySEC (Europe), BaFin (Germany and Austria), the DFSA (Dubai Financial Services Authority), Kenya (CMA) and the SCB (Securities Commission of the Bahamas).
Note: Pepperstone UK does not offer cryptocurrency as required by FCA regulations. This is because the FCA believes that currencies that exist on the blockchain and cryptocurrency exchanges are too high-risk and speculative for retail traders.
Our Verdict On Pepperstone
Pepperstone was rated the top forex broker in 2023 and is also considered the best broker for trading micro lots as it offers tight spreads while charging low commission fees. To develop micro trading strategies, you are able to use a sophisticated range of inbuilt and add-on tools.
View Pepperstone ReviewVisit Pepperstone
The Broker That Has Good Micro Trading On MT4
With low commission-free spreads, no initial minimum deposit requirements, and smaller lot sizes, City Index is one of the best brokers for micro trading on MetaTrader 4 (MT4). As well as competitive pricing, you can utilise different analysis and risk management tools on MetaTrader 4 among other trading platforms.
Forex Market and Spreads
City Index spreads are very competitive when compared to other brokers offering online trading. Other than the GBP/USD and EUR/GBP where Pepperstone offers some of the best spreads, City Index consistently offers some of the tightest spreads across the board. For major currency pairs like the EUR/USD and USD/JPY, City Index customers can trade with average spreads of 0.80 pips commission-free. The broker offers over 85 different major, minor and exotic currency pairs with minimum spreads starting from 0.50 pips.
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|---|---|---|---|---|---|
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0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
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1.12 | 1.22 | 1.40 | 2.10 | 1.50 |
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1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
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1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
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1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
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1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Micro Trading: What is a Micro Lot?
Micro, mini and standard lot sizes are the most commonly traded contract sizes by retail investor accounts. City Index offers flexible contract sizes with micro, mini and standard lots available for most major and minor forex pairs. When trading certain exotic FX pairs you are restricted to micro-lots.
MT4 Trading Platform
City Index is a great option for micro trading on MetaTrader 4. The software is available as a desktop platform, WebTrader platform, or mobile apps. MetaTrader 4 provides a good selection of trading tools that can be used to develop trading strategies and stay on top of market changes, such as:
Trading Account Types
The broker offers three main retail investor accounts suited to different levels of trading experience and volume. Micro, mini and standard contract sizes are available for the following:
Safety & Regulation
As forex and CFDs are complex instruments that carry a high level of risk, it’s important to sign up to a trusted online broker. City Index is well respected as it is regulated by multiple tier-one financial authorities.
City Index: Overall
City Index takes the top spot thanks to tier-1 regulation, thousands of financial instruments, competitive pricing, and flexible lot sizes. There are trading tools suitable for each level of trading experience with MetaTrader 4, making it well-suited to all micro traders.
The Broker That Has Risk Management Tools With 0.1 Lots
Plus500 is well-suited to forex traders wanting strong risk management features and a simple pricing structure. Features such as flexible contract sizes, premium order types, and top-tier regulations make Plus500 a great option for micro trading and risk management.
When trading with Plus500, Plus500 does not use ‘lots’ as part of its terminology. Instead. A Lot with Plus500 is called a ‘Unit Amounts’. Where $€£ = 1. So $€£ 1000 units will be the minimum amount for currency pairs. This is equal to one micro-lot.
As a market maker broker, Plus500 only offers no commission spreads with no ECN-style account type available. With the combination of commission-free trading and various risk management tools, beginners can ease themselves into CFD trading by trading micro-lots of a range of asset classes such as:
When micro trading with Plus500 you can place both basic and premium order types to manage the high risk of forex and CFDs:
Regulation
As well as using risk management tools, signing up with a trusted and highly regulated broker helps reduce the high risk of trading. Established in 2008, Plus500 is listed on the London Stock Exchange and overseen by an array of top-tier financial authorities. Each location provides different levels of investor protection, yet one common policy is segregating client funds from operational capital.
The investor protection you are provided as a retail forex trader varies between Plus500 subsidiaries. Likewise, maximum leverage limits differ depending on the broker’s local financial regulation. You can sign up to one of the following Plus500 entities:
Plus500: Overall
Ideal for beginner traders with little experience, Plus500 offers great risk management tools to minimise potential losses when forex trading. Both micro-lots and premium order types are offered by the broker, allowing you to trade more preciously than with standard lots and order types.
View Plus500 ReviewVisit Plus500
*Your capital is at risk ‘72% of retail CFD accounts lose money’
The Broker That Has Top Social Trading With 1000 Units
eToro is one of the most popular brokers for social-copy trading. Millions of users from 140+ countries copy trade with eToro, meaning you gain access to one of the largest forex communities currently available.
Compared to manual trading that requires skill and time, social-copy trading is great for beginners as you don’t need to perform complex technical analysis when first starting out. Instead, you can simply copy the trading strategies of experienced investors.
As well as social-copy trading, eToro offers the following features and benefits:
eToro: Overall
eToro is one of the most popular social trading brokers. You gain access to a large forex and CFD trading community where you can execute your own analysis and orders or simply copy the strategies of more experienced traders.
*Your capital is at risk ‘68% of retail CFD accounts lose money’
The Broker That Has The Top Platform For Trading CFD Micro Lots
XTB is a top CFD broker offering access to over 1,500 different forex, index, commodity, crypto, ETFs and share CFD markets.
For more controlled and precise CFD trading, XTB allows you to place trades as small as 0.1 lots. Micro trading is permitted on both XTB’s proprietary trading platform, xStation, as well as MetaTrader 4.
XTB’s xStation software is available as a web trader platform and mobile trading apps for Android and iOS devices. The easy-to-use interface provides useful features including client sentiment data, an economic calendar and full market access.
Best Broker For CFDs
XTB is one of the best options for trading CFDs. With this broker you can choose from the following range:
All CFD assets are available in 0.01 lots (micro-lots) except cryptocurrencies. Bitcoin starts at 0.1 lots, but others vary.
Note: XTB UK does not offer Crypto products due to the regulatory requirements of the FCA.
XTB: Overall
When trading with XTB you can develop trading strategies based on the broker’s 1,500 different financial instruments. Two trading platforms are available – MT4 and xStation, with both providing advanced technical and fundamental analysis tools.
The Broker That Is Good For Trading With A Micro Account
FXTM is a global broker that is regulated by tier-1 financial authorities, including South Africa’s FSCA and the UK’s FCA. Unlike many other top brokers, FXTM offers a Micro Account, specifically designed for micro trading on MetaTrader 4.
Micro Account Types
Key features of FXTM’s Micro Account include:
It is easy to open a Micro Account as a very low minimum deposit of $10 USD is required. For a $10 deposit made, your trading account balance will reflect 1000 cents.
FXTM: Overall
The broker’s Micro Account was purely designed for micro trading, although mini and standard lots can also be traded. A very low minimum deposit of $10 is required to open an account, meaning it’s accessible to beginners not able to make large initial capital outlays.
The Broker That Trades Low Volume Lots With cTrader
FxPro is a popular broker if cTrader is your platform of choice. As well as the ability to trade lot sizes as small as 0.01 (micro lots) you will gain access to competitive floating spreads and excellent trading tools.
cTrader Trading Tools
When setting up your FxPro cTrader account, you will need to deposit at least $100 USD. For each trade, you’ll pay a flat rate commission fee that varies between forex pairs and your account’s base currency. To help you calculate commission costs as you trade, the broker offers a calculator online where you can determine your trading costs.
FxPro: Overall
FxPro is a popular broker favoured by many cTrader users. Predominately a forex trading platform, cTrader provides an excellent range of trading tools to help you develop sophisticated strategies. Automation can be achieved using cBots, while risk can be managed with different pending order types.
*Your capital is at risk ‘84.69% of retail CFD accounts lose money’
The Broker That Has Good Micro Position Sizing With High Leverage
HotForex offers a Micro Account designed for beginner traders wanting to trade smaller volumes. To open a Micro Account an initial deposit of $5 is needed, with the small capital outlay making it accessible to many new traders.
While the broker’s other account types provide leverage up to 500:1, Micro Account holders can access a much higher maximum leverage of 1000:1.
HotForex is regulated by 6 different financial authorities around the globe, and depending on the subsidiary you sign up with, you may not be able to sign up to a micro trading account and access 1000:1 leverage.
HotForex’s European branch does not offer Micro Accounts. With the aim of reducing risk for traders, financial regulators in certain jurisdictions enforce leverage caps. For instance, CySEC in Cyprus and the FCA in the UK restrict leverage to a maximum of 30:1. Similarly, in accordance with the UAE’s financial regulation, HotForex’s Dubai (DFSA regulated) branch cannot offer micro accounts or leverage over 50:1.
Registering with the brokers Seychelles-based subsidiary will allow you to use 1000:1 leverage. Yet, trading with extremely high leverage carries a high risk of losing money. Although you are trading smaller lots which helps limit your losses, it is best to incorporate strong risk management tools (i.e. order types) when trading with such high leverage.
HotForex: Overall
HotForex offers double the maximum leverage than most forex brokers. Although such high leverage can dramatically enhance your profits, you are taking on significantly higher risk. Please note, the broker’s maximum leverage limits vary between financial jurisdictions.
The Top Broker For Nano Lot Trading
OANDA goes one step further than micro trading, offering nano trading on their proprietary trading platforms. While a micro lot equates to 1,000 currency units, with OANDA there are no restrictions on position sizes and you can trade as little as 1 unit of currency.
Nano lot trading is a great option for beginners, as it means you won’t take on excess risk when you are still learning the ropes. As you build confidence, you can start trading larger volumes, for instance, 100,000 nano lots.
Although OANDA offers MetaTrader 4 as well, nano trading is only accessible on the broker’s proprietary platform. The software is available as mobile apps for Android and iOS devices, as well as a WebTrader and desktop trading platform.
All versions of the platform offer different features to help you develop trading strategies, providing both technical and fundamental analysis tools. No minimum deposit is required to open a trading account with OANDA.
OANDA: Overall
OANDA is unique in the sense that it enforces no restrictions on minimum trade sizes, with clients able to place orders as small as 1 unit. To trade small lot sizes like nano lots, you will need to use the broker’s proprietary trading platform.
The Broker Best For Trading 1000 Lots On MT5
If you prefer to use MetaTrader to trade, IC Markets is a great option with both ECN-style (Raw Spread) and no-commission (Standard) accounts.
Both Raw and Standard account types require a minimum deposit of $200 and permit micro lot trading.
As MT5 is a multi-asset platform, IC Markets offers a great range of financial instruments on the platform:
IC Markets MT5 servers in New York (Equinix NY4 Data Centre) ensure ultra-fast execution and minimal slippage. With tight spreads, quick execution speeds, and a diverse selection of financial instruments, IC Markets, and MT5 are a great option for micro traders.
IC Markets: Overall
If you want a MetaTrader 5 broker with fast execution and ultra-low spreads, IC Markets is a great option. Two key strengths of the broker’s MT5 offering are its ECN-style pricing and range of markets. 7 different asset classes can be traded, including shares, cryptos and futures.
The Broker With The Best Micro Currency Platforms Overall
Markets.com gives you a choice of 5 trading platforms when trading. These trading platforms are:
MetaTrader for trading Micro-lots, Markets.com Trading Platform for trading units
If you select Markets.com proprietary platform, then you will trade with units. This means you can enter quantities starting from 1000 units (or 1 mini-pair) depending on the product you are trading.
If you choose MetaTrader, then you be trading in lots. This means you will enter 1 for a standard lot, 0.01 for a micro-lot and 0.10 for a mini-lot.
Markets.com’s most powerful proprietary platform
This is Market.com’s signature trading platform. Custom-built from the ground up with the needs of Markets.com clients in mind, this platform allows you to trade all the financial instruments available with the broker.
Key features available when choosing Markets.com include:
Low Spreads with no commissions
Markets.com offers a standard style account which means you pay no commissions. While Markets.com doesn’t provide their average spreads, we checked their live spreads and found they are consistently competitive with other brokers.
We observed spreads for the EUR/USD and AUD/USD pair as low as 0.60 pips, this makes Markets.com cheaper than many ECN style accounts which have commissions of $7.00. 1 pips = $10 so a spread of 0.60pips means $6.00.
Good Range of Markets
With 2,000+ assets, including 67 forex currency pairs, 16 indices, 11 commodities, 995 shares, and 13 cryptos, there is no shortage of products you can trade with Markets.com.
View Markets.com ReviewVisit Markets.com
*Your capital is at risk ‘70% of retail CFD accounts lose money’
Traders generally trade purchase and sell forex in lots. A ‘lot’ refers to the quantity of an order to open or close a trade. There are 4 types of lots and these represent a defined number of units.
Micro-lots refers to the trading of 1000 units. Most forex brokers permit trading with a minimum of 1 micro lot. See our best brokers for forex trading. All these brokers allow trading with micro-lots.
While nano-lots are the smallest available lots for trade, not many brokers offer these. Mirco-lot is the smallest commonly available lot for trade which makes it a good strategy to reduce risk if you are new to trading or lack trading experience when trading while investing real cash. While Micro lot trading won’t lead to the high returns trading with mini or standards lots will, the lower levels of cash means losses are greatly reduced when movements are unfavourable.
If you are wanting a micro lot account because you are not ready to risk your own cash, using a Best Demo Trading App may be a better strategy. With these accounts, you can use virtual currency meaning you will not lose actual capital on bad trades.
A lot size is expressed in units. A standard lot is 100,000 units, this is sometimes simply called 1 lot. So 0.1 lots are 10,000 units which are 0.1 of 100,000 units and sometimes also called mini-lots. 0.01 is a micro-lot or 1000 units or 0.01 of 100,000 units.
Just about all brokers offer standard lots as the default when trading however most will offer min-lot and micro-lot trading options. Less common options for trading are nano-lots or non-lot (i.e. trading in volumes rather than lots) trading.
Brokers that offer micro-lot trading include:
Certain brokers offer flexible lot sizes to help forex traders manage risk. While the smallest trading volume offered by most top brokers is micro-lots, nano lots are also available to trade with brokers like Oanda. The four most commonly traded contract sizes are:
All levels of trading experience can benefit from trading smaller lot sizes. If you are experienced trading forex, trading micro-lots enables you to incorporate a more diverse range of financial instruments into your strategies by placing smaller trades across a wider collection of forex pairs.
If you are new to forex trading, micro trading is a good approach to risk management as you don’t need to make a large initial deposit to start trading and you aren’t risking large losses. Additionally, both beginner traders and seasoned pros can use micro lots to test trading strategies against real-time market conditions.
City Index is one of the best brokers for anyone wanting to trade micro-lots, with a great range of account types and trading platforms available. User-friendly trading platforms provide a soft entry into forex trading, while VIP traders are rewarded with cash rebates. Most importantly, the brokers no commission forex spreads are ultra-tight, averaging 0.80 pips for the EUR/USD.
Disclaimer: Trading the financial markets is not all about making money, as there are usually high levels of fluctuations within the market. Trading will usually result in you losing money if not done correctly. The liquidity of a market has a significant influence on the volatility of the market, for example, the exchange rate of the Euro against the US Dollar is one of the most popular forex pairs and therefore will have high liquidity and low volatility.
Ask an Expert
Is micro lot trading better than trading standard lots?
There are pro and cons of both but in terms of costs, some brokers might charge a slightly higher commission when compared with standard lots when compared on a pro-rata basis. This is because the broker makes less money when trading smaller lots, also liquidity providers usually only offer standard lots for trading so the broker needs to either offer their own liquidity or combined multiple small order when micro lot trading.
Micro lot trading can also limit your profits, especially when using leverage but it can limit your losses too.
However if you have a small trading account, then micro lot trading can be beneficial since you required margin is lower to open your position.
Is it true that trading currency futures in a personal account has negative tax consequences?
If so, what is the best entity to use for trading… LLC? SubSCorp? Retirement Account? Other?
We can’t give financial advise, for this you are best to spread with your accountant.